Facebook’s News Feed change leaves investors nervous

Facebook’s News Feed change leaves investors nervous
Mark Zuckerberg, CEO, Facebook.
Published: 14 January 2018 - 6:35 a.m.
By: Aasha Bodhani

Since Facebook's CEO Mark Zuckerberg announced that the social network will reduce non-advertising content on the News Feed, shares fell more than 4%.

Last week Zuckerberg said he would change the user engagement on Facebook where users will instead see prioritised posts from family and friends, instead of advertising content from publishers and brands.

Zuckerberg said ion his Facebook page: "We feel a responsibility to make sure our services aren't just fun to use, but also good for people's well-being.

"As we roll this out, you'll see less public content like posts from businesses, brands, and media. And the public content you see more will be held to the same standard -- it should encourage meaningful interactions between people."

While the CEO plans for more ‘meaningful interactions', he did note that users may spend less time on the platform and this announcement saw Facebook's stock fall by 4%.

Bank of America analyst Justin Post said in a research note that Facebook is moving towards becoming a social platform rather than a news outlet. However whilst this leaves advertisers and investors uncertain, Post added that by improving customer experience the move "could drive higher ad prices to counterbalance."

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